HIGHER EDUCATION BUBBLE UPDATE: West Virginia University Banked on Growth. It Backfired. The state flagship, like other universities, faces a deficit and major cuts after years of excessive spending.
Now facing a $45 million budget deficit, administrators have proposed eliminating dozens of programs, including the mathematics Ph.D. and the entire world languages department. Students staged a spirited protest on campus last week, and faculty are pleading with the school’s governing board to reject the recommended cuts.
West Virginia reflects a broader pattern of flagship schools increasing expenditures far faster than they did enrollment, as detailed in a recent Wall Street Journal investigation. The proposed cuts have caused concern over the direction of education in the state, among the nation’s poorest, and the school’s role as a steppingstone for local students into the global economy.
University President E. Gordon Gee and current and former members of the board blame the institution’s financial challenges on the pandemic and state funding cuts, as well as competition and demographic changes.
A review of university financial records, however, shows that its spending habits and expansion plans set it on a path to instability.
If only there had been some sort of warning.
The nation’s best-known public universities have been on an unfettered spending spree. Over the past two decades, they erected new skylines comprising snazzy academic buildings and dorms. They poured money into big-time sports programs and hired layers of administrators.
Then they passed the bill along to students.
The University of Kentucky upgraded its campus to the tune of $805,000 a day for more than a decade. Its freshmen, who come from one of America’s poorest states, paid an average $18,693 to attend in 2021-22.
Pennsylvania State University spent so much money that it now has a budget crisis—even though it’s among the most expensive public universities in the U.S.
The University of Oklahoma hit students with some of the biggest tuition increases, while spending millions on projects including acquiring and renovating a 32,000-square-foot Italian monastery for its study-abroad program.
The spending is inextricably tied to the nation’s $1.6 trillion federal student debt crisis. Colleges have paid for their sprees in part by raising tuition prices, leaving many students with few options but to take on more debt. That means student loans served as easy financing for university projects.
“Students do not have the resources right now to continue to foot the bill for all of the things that the university wants to do,” said Crispin South, a 2023 Oklahoma graduate. “You can’t just continue to raise revenue by turning to students.”
Unfortunately, they’ve been alienating alumni and legislatures with woke politics.